Licensing Model
Licensing Model
The pairing of a value metric with entitlement rules that scope what each unit grants. The licensing model is the upstream-most decision in SPP's pricing architecture: it defines the unit of access and the conditions under which that access is granted. Everything downstream (packaging, pricing model, discount structure) operates on what the licensing model has defined. In a license agreement, the licensing model typically appears in the licensing and rights-to-use section.
Used in these articles
- The Acquired Metric: Meld or Pass Through
- Pricing Model vs Value Metric: Why the Industry Keeps Misreading the Actual Lever
- Compensating Sales on Gross Profit, Not Revenue: Discount Control That Survives Multi-Product Deals
- Credit-Based Pricing for AI Software: The Six Fatal Flaws
- Pricing Software You Used to Sell as a Service